ACES is a proven good deal

Posted: March 13, 2013 - 12:01am

With only a 90 day session, I have to wonder about some legislators still working on Gov. Sean Parnell’s oil tax give away, SB 21, and pushing the bill.

We have seen the information in the Juneau Empire and heard how there are no promises from the oil companies for new exploration or increasing production from the current fields. Governor Parnell said the bill is needed to increase oil production. Here are some of the facts as cited by Sen. Bill Wielechowski that contradict the governor.

1) The number of workers on the North Slope is at an all time high (over 13,000).

2) Investments are at an all time high (over $2.4 billion)

3) The oil companies had $35+ billion in profits from Alaska oil since ACES passed.

4) According to Governor Parnell’s consultants, investments in new wells within existing legacy fields (like Prudhoe) yield estimated returns of about 123% on Alaska oil.

Isn’t $35 billion in profits (remember that is money after expenses) enough? It sounds like ACES is good for both the oil companies and the State of Alaska.